And Couple C, being renting regulars, decides to ride it out. They bank the $18,000 a year to start knowing rent goes up 5% a year or less over the long term.
In year ten, they buy the same house, still for $650,000 because inflation and incomes are starting to get back in line.
They take a 30 year loan at 6.5%, put down $150,000 from their savings, still having over $400,000 left. Kick back with their $3160 monthly payment knowing they’ve got it in the bank. Bank the extra $600 a month like Couple B.
Twenty years later, they get tired of hearing their friends couple A and couple B brag about almost being paid off, so they take $362,000 out of their investments now at $3,364,000 and pay off their house and realize they have three million left to retire and play with.
